........Fiscal and monetary policy should become less immune to such electoral vagaries. Constraints generally hamper optimal decisions, under the assumption that appropriate objective functions are being maximized. However, if there is uncertainty about objective function being maximized, more constraints are a good idea. If nothing else, they prevent FM and RBI Governor from doing what is known to be myopic and short-sighted, but is being indulged in for political compulsions. As the economy matures, budgets and monetary policy should both become continuing processes, not earmarked for one or two days of the year. Subbarao-Chidambaram might not quite state it in these terms, since independence from immediate government implies scrutiny and constraints imposed by Parliament. In addition, they will be robbed of some of their halo and mystique.........
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